A, B and C were partners in a firm. A died on 31.3.2018 and the Balance Sheet of the firm on that date was as under :
Balance Sheet of A, B and C as at 31.3.2018
Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
Creditors | 7,000 | Cash at Bank | 12,000 |
General Reserve | 9,000 | Debtors | 32,000 |
Workmen Compensation Fund | 10,000 | Furniture | 30,000 |
Profit & Loss Account | 6,000 | Plant | 40,000 |
Capital |
| Patents | 8,000 |
A 40,000 |
|
|
|
B 30,000 |
|
|
|
C 20,000 | 90,000 |
|
|
| 1,22,000 |
| 1,22,000 |
On A’s death it was found that patents were valueless, furniture was to be brought down to Rs. 24,000, plant was to be reduced by Rs. 10,000 and there was a liability of Rs. 7,000 on account of workmen’s compensation.
Pass the necessary journal entries for the above at the time of A’s death.
Marks-4, CBSE:2018-19/Main/05/Q-12